Pacific index

MarcoM

Hi,

I would like to know if other fellow DIYers have investments in mutual funds or IT in Far East and if so in what % of your total investment?

I have a Vanguard 80 equity fund but I would like to increase my investment in the Far East a little bit more so I was thinking of buying an index tracker for the FE. Does it sound like a bad idea?

Thanks

Borrowedtune

Me, I have 17% of my ISA/PEP savings in Asian UTs and ITs, and also 12% in emerging markets (the majority of the latter being located in Asia)

The equivalent ratios in my SIPP are 20% and 15% respectively.

However, I suspect I may have a larger appetite for risk than most...

Shaolin_Monkey

Have about 7% in Asia, using Newton Asian Income and First State's Scottish Oriental Smaller Companies Trust.

redbuzzard

About 7% Japan, and 7% Pacific exc. Japan, both index trackers. Plus <2% Newton Asian Income, <2% Templeton Emerging Markets IT and <2% Aberdeen Asian Smaller Companies IT.

Japan has done well since Christmas - near on 20% being the combined effect of the index and exchange rate. Pacific less good, but it has moved up. I also hold US index and European index, about 3%-4% each. I'm keeping an eye on inflation and if Carney really goes for it I'll hope for some benefit on the exchange rates so it's a bit of a hedge in my mind. I do watch the exchange rates very carefully for any sign that it might go the other way - I'm amazed how well sterling is holding up, I suppose it's because it's not much better elsewhere.

Ark_Welder

As a percentage of equities, I have around 12% allocated to Asia ex Japan. Largely accounted for by holdings in Aberdeen Asian Income Fund (which includes Australia and Japan, former is counted in the 12% but the latter is not) and Aberdeen Asian Smaller Companies. Both ITs

If you should decide to go a tracker route then you should check which index is being tracked. Otherwise, you might not get what you think you're getting. Apart from the usual inc and ex Japan possibilities, some track only developed Asia, some include India and others do not, ditto with Australia. The MSCI indices more-so than FTSE equivalents.

Forever

I currently have 25% of my portfolio allocated to equity in this part of the world. But it does cover the whole area from the advanced through to the frontier countries.

This is because I believe that over the long term, this part of the world has more potential for growth than other parts of the world.

I hold most of this equity in my Shroder Asian Income funds (and I feel gutted that I missed out on buying the Aberdeen Asian Smaller Companies which is way too expensive for me to contemplate now).

However I did notice that the Vanguard Pacific ex Japan tracker performed marginally better than my Shroder Asian Income funds in the last year (but worse the year before) so I'm keeping my eye on this tracker. On the other hand, despite the yearly fees being cheap for the Vanguard trackers, I can't help but be put off by the unit price. But no-one else seems bothered so this is probably just me

Disclaimer: I'm not in any way a financial expert so take anything I say with a rather large pinch of salt.

bigadaj

Forever, the unit price is irrelevant really, it's like a share price, it's just something that people to be at a particular level, so funds or companies tend to split or consolidate to keep a figure that is typically a few pounds.

I probably have 20% of my isas in the region, and 10% or a bit more of pension, now I think about it that seems underweight on pension.

I'm in Aberdeen Asian smaller companies, Newton asiaincome as well as a couple of trackers, this excludes global funds high will have an element of Asian companies. I have a single Japan fund as well.

Shaolin_Monkey

Another reason the unit price is largely irrelevant is that OEICS and UT's issue part units, so it doesn't pose any problems. So you could have 10.13794 units in a Vanguard fund and that would be fine. ETF's and IT's on the other hand only trade in whole shares, so if you have an ETF where each share costs say, £330 (such as CP9) that could be a practical problem for small investors.

bigfreddiel

invest in a world index - then its all taken care of

fj